CHARLOTTE, N.C., Sept. 16, 2015 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) announced today guidance for its third
quarter ending October 3, 2015. Nucor expects third
quarter results to be in the range of $0.45 to $0.50 per diluted share. This range is
a decrease from the third quarter of 2014 earnings
of $0.76 per diluted share and is an increase compared to
the second quarter of 2015 earnings of $0.39 per diluted
share.
Projected third quarter results include a LIFO credit of
$83.0 million ($0.16 per diluted share), compared to a credit of
$95.5 million ($0.19 per diluted share) in the second quarter of
2015 and a credit of $14.5 million
($0.03 per diluted share) in the
third quarter of 2014. Included in the second quarter of 2015
results was a $9.3 million
($0.03 per diluted share) benefit
related to state tax credits. Included in the third quarter of 2014
results was a $12.5 million
($0.03 per diluted share) charge
related to the partial write down of assets within the steel mills
segment.
Overall operating performance at the steel mills segment in the
third quarter of 2015 is expected to increase from the second
quarter of 2015. Margins are expected to improve as our steel mills
have benefited from an average lower cost of inventory in the third
quarter as compared to the second quarter. The automotive market
remains strong, while nonresidential construction markets are
continuing to gradually improve. Energy, heavy equipment and
agricultural markets remain weak. Steel prices and margins remain
under pressure from exceptionally high levels of imports that
continue to flood the domestic market. Imports accounted for an
estimated 30% of the finished steel market in the first eight
months of 2015, compared with an estimated 27% in the first eight
months of 2014.
The operating performance of the downstream products segment has
improved in the third quarter of 2015 as compared to the second
quarter of 2015. The downstream products segment's profitability in
the first nine months of 2015 has significantly improved compared
to the first nine months of 2014. This performance reflects the
continuing gradual improvement in nonresidential construction
markets.
The performance of the raw materials segment is expected to be
similar to the second quarter of 2015. We anticipate an operating
loss of approximately $20 million
($0.04 per diluted share) at Nucor
Steel Louisiana in the third quarter of 2015, compared to an
operating loss of approximately $20
million ($0.04 per diluted
share) in the second quarter of 2015. The operating loss in the
second quarter of 2015 included the benefit of a $10.0 million ($0.02 per diluted share) payment received related
to warranty claims associated with the repair of the process gas
heater. The performance of the raw materials segment is also
expected to be impacted by decreased performance in our scrap
processing businesses in the third quarter of 2015 as compared to
the second quarter of 2015 due to the continued decline in scrap
prices.
Nucor and its affiliates are manufacturers of steel products,
with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and
alloy steel -- in bars, beams, sheet and plate; steel piling; steel
joists and joist girders; steel deck; fabricated concrete
reinforcing steel; cold finished steel; steel fasteners; metal
building systems; steel grating and expanded metal; and wire and
wire mesh. Nucor, through The David J. Joseph Company, also brokers
ferrous and nonferrous metals, pig iron and HBI/DRI; supplies
ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is
North America's largest
recycler.
Certain statements contained in this news release are
"forward-looking statements" that involve risks and
uncertainties. The words "believe," "expect," "project,"
"will," "should," "could" and similar expressions are intended to
identify those forward-looking statements. Factors that might
cause the Company's actual results to differ materially from those
anticipated in forward-looking statements include, but are not
limited to: (1) competitive pressure on sales and pricing,
including competition from imports and substitute materials; (2)
the sensitivity of the results of our operations to prevailing
steel prices and the changes in the supply and cost of raw
materials, including scrap steel; (3) market demand for steel
products; and (4) energy costs and availability. These and
other factors are discussed in Nucor's regulatory filings with
the Securities and Exchange Commission, including those
in Nucor's fiscal 2014 Annual Report on Form 10-K, Item
1A. Risk Factors. The forward-looking statements contained in
this news release speak only as of this date, and Nucor does
not assume any obligation to update them.
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SOURCE Nucor Corporation